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Ohai Pilot Update
COMPANY ANNOUNCEMENT 8th March, 2011
Ohai Pilot Update
L&M Energy Limited (LME) is pleased to provide the following update on drilling progress at the Ohai pilot project.
After reaching a depth of 244m, production casing has now been installed within lateral well OM#7. Directional drilling has begun on the radius build section of the well and is currently at a depth of 310m, which is within the Beaumont coal measures.
The two horizontal lateral wells will then be drilled to intersect OM#5 using proven directional drilling methods. Each of the lateral wells will pass through approximately 700m of coal with the gas they produce to be extracted from OM#5.
The pilot project
follows on from the company’s 3P reserves upgrade to 274
PJ and forms a key part of the Company’s 2P gas reserves
campaign which is aimed at independently certifying New
Zealand’s first tranche of 2P CSG reserves.
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